1. Human Resource Management
HR Planning
Human Resource Management

2. Human Resource Management
HR Planning – Learning
By the end of this unit you should be able to:
Define HR planning and explain its purpose
Describe the HR Planning process namely; Stocktaking, Forecasting, Planning and Implementing
Define and calculate labour turnover and explain its relevance to HR planning
Define and calculate absenteeism and explain its relevance to HR planning
Human Resource Management

3. General Comments on HR Planning
Key aspect of HR
Should link Business Strategy and HR
Arguments for and against HRP
Use of ‘computers’
Started in the 60’s as Manpower Planning
Manpower Planning versus HR Planning
HR Planning varies greatly across companies
Human Resource Management

4. of HR Planning?
“The process by which an organisation ensures that it has the right number and kinds of people, at the right place, at the right time, and capable of effectively & efficiently completing those tasks that will help the organisation achieve it’s overall strategic objectives”
Human Resource Management, DeCenzo & Robbins, 1999
Forecasting the HR needs and
planning the steps necessary to meet them
Human Resource Management

5. Human Resource Management
Aims of HR Planning
Obtain & retain the quantity and quality of manpower needed
Make the best use of manpower resources
Anticipate potential surpluses/deficits
Human Resource Management

6. Why is it important for an organisation to conduct HR Planning?..
Marchington & Wilkinson, Core Personnel & Development 2000
Human Resource Management

7. Benefits of HR Planning
Reduced costs
Improved planning of employee development
Improved business planning
Equality improvements
Promotion of HR planning
Useful tool for measuring HR success
Human Resource Management

8. Human Resource Management
Human Resource Management, De Cenzo & Robbins1999
Human Resource Management

9. Human Resource Management
HR Planning Process
Stocktaking / Analysing
Forecasting
Planning
Implementation
Human Resource Management

10. Human Resource Management

11. Human Resource Management
Personnel & HR Management, Gunnigle et al, 1997
Human Resource Management

12. Stocktaking – Internal; HR
Workforce profile (age, experience, skills, ability)
Age, experience, qualifications inventory
Skills inventory
Personnel replacement charts
Training and development plans
Performance reviews
Job analysis (what skills,knowledge, abilities are required)
Job descriptions
Skill audit
Human Resource Management

13. Human Resource Management
Forecasting
Demand Forecasting
How many employees will be required for the future
Supply Forecasting
Where future employees are going to be found
Human Resource Management

14. Human Resource Management
Demand Forecasting
INTERNAL
organisational objectives
operational plans
product demand
technology and administrative changes
Capital investment plans
Managerial judgement
EXTERNAL
economic climate, legislation, flexibility
Human Resource Management

15. Human Resource Management
Supply Forecasting
Classify manpower resources/Age analysis
Labour turnover/Wastage analysis
Promotions/Transfers
Changes in hours/patterns of work
Absence analysis
Sources of supply
Human Resource Management

16. Human Resource Management
Wastage analysis
Measuring turnover
number of employees who leave in one year x 100
average number employed in the past year
Labour Stability Index
number of employee’s with more than one years service x 100
total number employed one year ago
Human Resource Management

17. Human Resource Management
Personnel & HR Management, Gunnigle et al, 1997
Human Resource Management

18. Human Resource Management
Personnel & HR Management, Gunnigle et al, 1997
Human Resource Management

19. How to calculate absenteeism
Total absence (days/hours) in a particular period x 100
Total possible time (day/hours)
Human Resource Management

20. Exercise: Age Analysis
What do we mean by age analysis?
Why would you conduct an age analysis?
What are the following statements saying about age in the organisation
This organisation has a mature age profile
This organisation has a middle age profile
This organisation has a young age profile
List some advantages and disadvantages of each the above profiles?
Human Resource Management

21. Sources of External Supply
In establishing the sources of external labour supply one needs to be mindful of the following:
Unemployment levels
Employment trends
Local market conditions
Occupational market conditions
Legislation e.g. equality,
Social Partnership
Human Resource Management

22. Sources of supply - Local
Level of unemployment
Open & closure of new workplaces
Nos. and qualifications of school and college leavers
Housing & transport developments
Employer reputation
Human Resource Management

23. Exercise: Supply of labour local to organisations
List factors that influence the supply of employees in the area LOCAL to an organisation?
Human Resource Management

24. Human Resource Management
Stage 3: Planning
By going through stages 1,2,3 an organisation establishes whether it is going to have a labour shortage or surplus. From this it will then need to PLAN how it is going to address this shortage or surplus. This is called the planning stage.
Human Resource Management

25. Human Resource Management
Exercise: Planning
List actions that an organisation can take if it identifies that it will have a labour SHORTAGE
Human Resource Management

26. Human Resource Management
Exercise: Planning
List actions that an organisation can take if it identifies that it will have a labour SURPLUS
Human Resource Management

27. Stage 4: Implementation
The implmentation stage involves
Putting the plan into action, setting the cycle set in motion
Monitoring, Reviewing, Altering and Evaluating that Plan regularly.
Human Resource Management

28. But do organisations conduct HR Planning in Practice?
U.K.: Cowling & Waters(1990)
IPD survey, late ’80’s
Major uses of HRP were for
Identifying t&d needs
Analysing labour costs & productivity
Assessing need for structural change
HR Planning takes place on Ad hoc basis
Public Sector is behind the Private Sector
Kinnie & Arthurs (1993)
¾ of organisations had computer systems, 1/3 using them for strategic purposes
Marchington & Wilkinson, Core Personnel & Development 2000
Human Resource Management

29. HR Planning in Practice cont..
U.S.A. Greer, Jackson & Fiorito (1989)
USA is not much better than the UK
137 organisations in mid ’80’s
Qualitative techniques (such as replacement charts, personnel inventories, supervisor estimates)are more common than quantitative techniques
Major uses of HR planning include; career planning, hrd, affirmative action, avoiding shortages of key personnel
Huselid (1993)
Use of HR planning varies a great deal
Employers most likely to use HRP are large, r&d intensive orgs with sophisticated planning systems and HR managers who are actively involved at a strategic level
Marchington & Wilkinson, Core Personnel & Development 2000
Human Resource Management

30. Why do so few organisations avoid HR planning?
Models & techniques not really rooted in the real world
Data is not held in user friendly form
The is no clear links between HR & Business plans
Senior Line Managers have little interest in or commitment to HR planning
Marchington & Wilkinson, Core Personnel & Development 2000
Human Resource Management

31. Human Resource Management
Summary
HR Planning has a long way to go
HR Planning is not a substitute for managerial judgement but an aid to decision making
Changing nature of organisations is going to influence HR Planning
Human Resource Management

32. Extra Reading – all in Moodle!
Chapter 5 (pg 92 – 103) in core text book
CIPD Factsheet: Absence Management
CIPD Factsheet: Employee Turnover
Crown Hotel HR Planning Exercise
Human Resource Management

33. Human Resource Management
Sample exam questions
Describe the four stages in the HR planning process.
Describe 3 actions you could take to fill a labour shortage in a company?
Describe 3 actions you could take to resolve a labour surplus in a company?
Why is it important to know what the organisation mission and objectives are before you commence HR planning?
Explain the term labour turnover. Discuss the reasons why employees leave organisations. Discuss the actions organisations can take to improve employee retention.
According to the CIPD (2004) employee turnover is much higher in retailing, hotels & restaurants & call centres than among civil servants, fire fighter and the police. Discuss at least three reasons why this is so and describe at least 5 actions that organisations with unacceptably high turnover may take to reduce attrition rates
Imagine that you have just been given the task of devising a human resource plan for Next clothing retail in Sligo. What information would you need in order to put this plan together.
Human Resource Management